WINTER HAVEN, Fla., Dec. 16, 2025 /PRNewswire/ -- SouthState Bank has achieved multiple national honors for banking excellence and workplace culture, earning recognition from Money, U.S. News and World Report, Financial Technology Report, and American Banker. Continue Reading SouthState Named Among America's Best Banks and Employers by Top Industry Rankings "We are honored to be recognized among the nation's top banks and workplaces—a testament to SouthState's unwavering commitment to excellence," said Rich ...

Core Insights - Investors in SouthState Bank Corporation (SSB) should monitor stock movements due to high implied volatility in the options market, particularly the Dec. 19, 2025 $35 Call option [1] Company Overview - SouthState Bank is currently rated as Zacks Rank 3 (Hold) within the Banks – Southeast industry, which ranks in the top 7% of the Zacks Industry Rank [3] - Over the last 60 days, four analysts have raised their earnings estimates for the current quarter, resulting in an increase of the Zacks Consensus Estimate from $2.23 per share to $2.29 [3] Market Sentiment - The high implied volatility suggests that options traders anticipate significant movement in SouthState Bank shares, potentially indicating an upcoming event that could lead to a major price change [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Financial Performance - Consolidated net income for Q3 2025 was $246.6 million, a 72.3% increase from $143.2 million in Q3 2024, with diluted EPS rising to $2.42 from $1.86 [244]. - For the nine months ended September 30, 2025, consolidated net income reached $550.9 million, a 41.0% increase compared to $390.6 million in the same period of 2024 [244]. - The efficiency ratio improved to 49.9% in Q3 2025 from 56.6% in Q3 2024, reflecting a 63.9% increase in tax-equivalent net interest income and noninterest income [246]. - Basic and diluted EPS for Q3 2025 were $2.44 and $2.42, respectively, compared to $1.88 and $1.86 in Q3 2024, with a 32.7% increase in average basic common shares [247]. - Noninterest income increased by $24.2 million, driven by growth in correspondent banking and capital market income, as well as trust and investment services income, largely due to the Independent acquisition [248]. - Noninterest income for the nine months ended September 30, 2025, increased by $50.3 million, or 22.7%, compared to the same period in 2024 [266]. - The company’s net income (GAAP) for the nine months ended September 30, 2025, was $550,945,000, an increase from $390,605,000 in 2024 [374]. Asset and Liability Management - As of September 30, 2025, SouthState Bank Corporation had approximately $66.0 billion in assets and employed 6,259 full-time equivalent employees [216]. - Total assets grew to $64.8 billion as of September 30, 2025, compared to $45.3 billion a year earlier, reflecting the impact of the Independent acquisition [256]. - Total deposits reached $54.1 billion as of September 30, 2025, an increase of $16.0 billion from $38.1 billion at December 31, 2024, largely attributed to the $15.2 billion in deposits acquired from Independent [340]. - Total interest-bearing deposits increased $12.8 billion to $40.6 billion at September 30, 2025, from $27.9 billion at December 31, 2024, primarily driven by the acquisition of Independent [323]. - Cash and cash equivalents rose by $1.8 billion, or 125.9%, while net loans increased by $13.8 billion, or 40.6% during the same period [279]. - The average interest-earning assets increased to $58.7 billion, with a net interest margin of 4.06% for the three months ended September 30, 2025 [277]. Acquisition and Integration - The company completed the acquisition of Independent Bank Group, Inc. on January 1, 2025, in an all-stock transaction valued at $2.5 billion, issuing 24,858,731 shares of its common stock [231]. - The company completed its redomicile to Florida on August 31, 2025, through the merger of SouthState Corporation with SouthState Bank Corporation [224]. - The company issued $2.5 billion in stock related to the acquisition of Independent during the first quarter of 2025 [328]. - The integration of Independent's operations may encounter delays or higher costs than anticipated, affecting the merger's success [375]. Credit Quality and Risk Management - Allowance for Credit Losses (ACL) was $590.1 million, or 1.24% of total loans, down from $621.0 million at June 30, 2025 [310]. - The net charge-off ratio for the three months ended September 30, 2025, is 0.27%, compared to 0.07% for the same period in 2024, indicating an increase in charge-offs [315]. - The company maintained a blended forecast scenario for estimating expected credit losses, reflecting a mostly neutral stance with recognition of downside risks [308]. - The total expected credit losses amount to $590,133 thousand, with Non-Owner-Occupied Commercial Real Estate accounting for the largest share at 28.3% [314]. - The company must manage credit risk effectively to meet obligations, with potential impacts from economic downturns [376]. Regulatory and Economic Environment - The company is subject to regulatory changes, including the CFPB's finalized rule under Section 1033 of the Dodd-Frank Act, which may impact its operations [226]. - Regulatory changes may require higher capital levels, impacting the company's ability to pursue acquisition opportunities [379]. - Economic volatility risks could lead to higher rates, increased noninterest expenses, and potential loan losses, impacting overall financial performance [376]. Capital and Equity - Total shareholder's equity increased by $3.1 billion, or 53.0% [279]. - As of September 30, 2025, the Company's Tier 1 capital increased by 28.6% and the Bank's Tier 1 capital increased by 33.3% compared to December 31, 2024, primarily due to the acquisition of Independent and net income recognized [332]. - The Bank's Tier 1 leverage ratio, CET 1 risk-based capital ratio, and total risk-based capital ratio were 10.28%, 12.62%, and 13.76%, respectively, as of September 30, 2025, indicating a well-capitalized status [347]. Interest Rate and Market Risks - Interest rate risk could decrease net interest income, particularly from correspondent and mortgage divisions, impacting overall earnings [376]. - The total deposit beta assumption increased to 44.3% as of September 30, 2025, reflecting a rise in deposit costs from 5 basis points to 190 basis points during the upward rate cycle [362]. - The Economic Value of Equity (EVE) analysis indicated a 1.8% decrease and a 0.7% increase in EVE due to a 100 basis point increase and decrease in interest rates, respectively [364]. Noninterest Income and Expenses - Noninterest expense increased by $125.5 million, mainly due to higher salaries and employee benefits, and expenses related to the Independent acquisition [248]. - Noninterest expense for the nine months ended September 30, 2025, increased by $411.3 million, or 55.2%, compared to the same period in 2024 [270]. - Salaries and employee benefits increased by $48.3 million, or 32.0%, in Q3 2025, mainly due to the addition of Independent employees [269].

Core Insights - SouthState Bank Corporation has appointed Ben Sasse to its board of directors, bringing a wealth of experience from his public service and academic background [1][3]. Group 1: Appointment Details - Ben Sasse, aged 53, is currently the president emeritus and a professor at the Hamilton School at the University of Florida, and previously served as the 13th president of the University of Florida [2]. - Sasse has a notable political background, having served as a U.S. senator from Nebraska from 2015 to 2023, where he was involved in several key committees including Finance and Banking [2][4]. Group 2: Background and Qualifications - Prior to his senatorial role, Sasse was the 15th president of Midland University from 2010 to 2014 and has held various government and advisory positions with firms like Boston Consulting Group and McKinsey & Company [4]. - Sasse holds multiple degrees, including a bachelor's from Harvard University and advanced degrees from Yale University [5]. Group 3: Company Overview - SouthState Bank Corporation, headquartered in Winter Haven, Florida, provides a range of financial services to over 1.5 million customers across several states, including Florida, Texas, and the Carolinas [6].

Core Insights - SouthState Corporation (SSB) reported third-quarter 2025 adjusted earnings per share of $2.58, exceeding the Zacks Consensus Estimate of $2.20, and reflecting a 35.8% increase year-over-year [1][8] - The results were driven by a rise in net interest income (NII) and non-interest income, along with the successful integration of Independent Bank, acquired in January 2025 [1][10] - However, higher expenses and provisions posed challenges to overall performance [1][10] Revenues & Expenses - Total revenues for the quarter reached $698.8 million, marking a 63.9% year-over-year increase and surpassing the Zacks Consensus Estimate by 6.7% [3][8] - NII was reported at $599.7 million, up 70.6% from the previous year, with the net interest margin increasing to 4.06% from 3.40% [3][4] - Non-interest income amounted to $99.1 million, reflecting a 32.2% increase year-over-year [3] - Non-interest expenses rose significantly by 50.8% to $372.3 million, primarily due to merger and restructuring costs related to the Independent Bank acquisition [4][8] - The efficiency ratio improved to 49.88% from 56.58% in the prior-year quarter, indicating enhanced profitability [4] Loans & Deposits - As of September 30, 2025, net loans stood at $47.1 billion, showing a nearly 1% increase from the prior quarter [5] - Total deposits were $54.1 billion, with a slight sequential rise [5] Asset Quality - Provision for credit losses was $5.1 million, compared to provision benefits of $6.9 million in the prior-year quarter [6] - The allowance for credit losses as a percentage of loans decreased to 1.24%, down 15 basis points year-over-year [6] - The ratio of annualized net charge-offs to total average loans increased to 0.27%, up from 0.07% in the prior-year quarter [6] - Non-performing loans to total loans rose to 0.63%, an increase of seven basis points from the prior-year quarter [6] Capital Ratios & Profitability Ratios - As of September 30, 2025, the Tier I leverage ratio was 9.4%, down from 10% in the prior-year quarter [9] - The Tier 1 common equity ratio decreased to 11.5% from 12.4% in the prior-year quarter [9] - The annualized return on average assets was 1.49%, up from 1.25% in the year-ago period [9] - Return on average common equity improved to 11.04% compared to 9.91% in the prior-year quarter [9] Overall Assessment - SSB concluded the third quarter positively, with both top and bottom lines showing year-over-year growth [10] - The increase in NII and non-interest income is expected to support future financial performance [10] - The growth in loan and deposit balances is viewed as encouraging [10] - The acquisition of Independent Bank enhances SSB's presence in rapidly growing U.S. Metropolitan Statistical Areas [10] - However, elevated expenses from expansion efforts may impact profitability in the near term [10]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Net interest income rose to $600 million, up $22 million from the previous quarter, driven by a tax equivalent margin of 4.06% [6][8] - Charge-offs were reported at 27 basis points for the quarter, with year-to-date charge-offs at 12 basis points [4][8] Business Line Data and Key Metrics Changes - Loan production reached nearly $3.4 billion, with a 67% increase in loan production in Texas and Colorado since the first quarter [3] - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [19][20] - Non-interest income increased to $99 million from $87 million, with capital markets contributing significantly [36] Market Data and Key Metrics Changes - The company identified approximately $90 billion in overlapping deposits in the Southeast, Texas, and Colorado, indicating potential growth opportunities [5] - The loan pipeline in Texas grew from $800 million to $1.2 billion, with Florida and Atlanta also showing significant pipeline growth [20] Company Strategy and Development Direction - The company is focused on organic growth and recruiting efforts in response to market disruptions, rather than pursuing M&A opportunities [63] - Strategic planning is underway, considering deregulation and market opportunities, with a focus on enhancing the sales force [4][5] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit loan growth for the remainder of 2025, with potential acceleration into 2026 [19] - The company is optimistic about capitalizing on market disruptions and is focused on recruiting talented bankers [5][22] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin [6][7] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the merger's dilutive impact [8] Q&A Session Summary Question: Margin dynamics and future rate cuts - Management discussed the impact of higher accretion and the expectations for future rate cuts, indicating a potential deposit beta of around 27% [11][12][43] Question: Loan growth environment - Management guided for mid-single-digit growth, with a focus on commercial and industrial lending as the primary growth driver [19][20] Question: Credit quality and charge-offs - A significant charge-off was attributed to a specific credit, with management expressing confidence in the overall portfolio quality [27][28] Question: Capital management and buyback strategy - The company is maintaining a CET1 ratio of 11.5% and is considering share repurchases as part of its capital management strategy [29] Question: Non-interest income outlook - Management provided insights into the strong performance of correspondent banking services and projected a more stable run rate for non-interest income [36][37] Question: Future expense guidance - The company expects expenses to remain in the $345 million-$350 million range for the fourth quarter, with a focus on cost control [71]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Net interest income rose to $600 million, up $22 million from the previous quarter, driven by a tax equivalent margin of 4.06% [6][8] - Charge-offs were reported at 27 basis points for the quarter, with year-to-date charge-offs at 12 basis points [4][8] Business Line Data and Key Metrics Changes - Loan production reached nearly $3.4 billion, with a 67% increase in loan production in Texas and Colorado since the first quarter [3] - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [17][18] - Non-interest income increased to $99 million from $87 million, with capital markets contributing significantly [32] Market Data and Key Metrics Changes - The company identified approximately $90 billion in overlapping deposits in the Southeast, Texas, and Colorado, indicating potential growth opportunities [5] - The loan pipeline in Texas grew from $800 million to $1.2 billion, with Florida and Atlanta also showing significant pipeline growth [18] Company Strategy and Development Direction - The company is focused on organic growth and recruiting efforts in response to market disruptions, particularly in Texas and Colorado [5][19] - Management is contemplating adjustments to incentive structures to encourage recruiting and hiring in 2026 [42] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving mid-single-digit loan growth for the remainder of 2025, with potential for higher growth in 2026 [17] - The company is well-positioned to capitalize on market disruptions and is focused on building out its infrastructure [4][5] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin [6][7] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the dilutive impact of the Independent Financial merger [8] Q&A Session Summary Question: Can you walk us through the margin question? - Management discussed the impact of higher accretion and the dynamics of loan and deposit pricing in light of potential rate cuts [10][11] Question: What is the outlook for loan growth? - Management guided for mid-single-digit growth for the remainder of 2025, with a focus on commercial and industrial lending [16][17] Question: How do you feel about the credit portfolio? - Management confirmed the large charge-off was related to a specific credit and stated that the rest of the portfolio remains stable [24][25] Question: What is the optimal CET1 ratio? - Management indicated a healthy CET1 ratio of 11.5% and expressed no specific target but a preference for the 11% to 12% range [26] Question: Can you provide insights on non-interest income? - Management noted a significant increase in non-interest income, particularly from capital markets, and provided a cautious outlook for future quarters [31][32] Question: What are the expectations for deposit beta? - Management expects a deposit beta of around 27% to 30% in the next easing cycle, indicating a lag in response to rate cuts [39][66] Question: What is the guidance for NIE in the fourth quarter? - Management maintained guidance for NIE in the range of $345 million to $350 million for Q4 [67]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [4] - Pre-provision net revenue (PPNR) was $347 million, with net interest income of $600 million, up $22 million from Q2 [9][10] - Cost of deposits rose by 7 basis points to 191 basis points, while loan yields improved by 15 basis points to 6.48% [11][12] - Capital position strengthened with a Common Equity Tier 1 (CET1) ratio of 11.5% and tangible book value (TBV) per share at $54.48, exceeding year-end 2024 levels [14] Business Line Data and Key Metrics Changes - Loan production reached nearly $3.4 billion, with a 67% increase in loan production in Texas and Colorado since Q1 [5] - Commercial and industrial (C&I) loans experienced 9% linked quarter annualized growth, while residential loans grew by 6% [31] - Non-interest income rose to $99 million, driven by correspondent capital markets and deposit fees [12][50] Market Data and Key Metrics Changes - The company identified approximately $90 billion in overlapping deposits in the Southeast Texas and Colorado markets, indicating significant growth opportunities [8] - Loan pipelines in Texas increased from $800 million to $1.2 billion, with Florida and Atlanta also showing strong pipelines of $1 billion and $900 million, respectively [32] Company Strategy and Development Direction - The company is focused on organic growth through recruiting and expanding its sales force, particularly in response to market disruptions [7][81] - Strategic planning is underway to capitalize on deregulation and market opportunities, with a focus on maintaining a strong capital formation rate [7][14] Management's Comments on Operating Environment and Future Outlook - Management expects net loan growth to accelerate in the coming quarters, with a forecast of charge-offs around 10 basis points for the year [6][13] - The company anticipates mid-single-digit loan growth for the remainder of 2025, potentially increasing to upper single digits in 2026 [30] Other Important Information - The company is currently in a strong capital position, allowing for share repurchases while pursuing growth opportunities [43][82] - Management indicated that the transition of IBTX bankers to South State's business model will involve changes in incentive structures to prioritize loan growth and profitability [61] Q&A Session Summary Question: Can you walk us through the excess accretion this quarter? - Management explained that higher accretion was observed in July, with expectations for a decrease in the following months due to early payoffs and changes in loan vintages [20][22] Question: What is the outlook for loan growth given the current market dynamics? - Management guided for mid-single-digit growth for the remainder of 2025, with a focus on C&I loans and a strong pipeline in Texas [30][31] Question: How do you feel about the rest of the portfolio apart from the large charge-off? - Management confirmed that the charge-off was an isolated incident and that the overall portfolio remains stable [39][40] Question: What are the expectations for non-interest income moving forward? - Management indicated that while the current quarter showed strong performance, they expect a more normalized run rate in the future, estimating around $370 million to $380 million for 2026 [52] Question: How will the transition of IBTX bankers affect growth and expenses? - Management stated that the transition will align incentives with South State's model, focusing on loan growth and profitability [61]

Financial Data and Key Metrics Changes - Earnings per share increased by 30% year-over-year, with a return on tangible equity of 20% [3] - Loan production rose to nearly $3.4 billion, with moderate growth in both loans and deposits [3] - Net interest income reached $600 million, up $22 million from the previous quarter, driven by a tax equivalent margin of 4.06% [6][8] - Charge-offs were reported at 27 basis points for the quarter, with year-to-date charge-offs at 12 basis points [4][8] Business Line Data and Key Metrics Changes - Commercial and industrial lending saw a 9% linked quarter annualized growth, while residential growth was about 6% [18] - The pipeline for loans in Texas increased from $800 million to $1.2 billion, indicating strong growth potential [19] - Non-interest income was $99 million, up from $87 million, with capital markets contributing significantly to this growth [32] Market Data and Key Metrics Changes - Loan production in Texas and Colorado increased by 67% since the first quarter of the year [3] - The company identified approximately $90 billion of overlapping deposits in the Southeast, Texas, and Colorado markets that are currently consolidating [5] Company Strategy and Development Direction - The company is focused on capitalizing on market disruptions and is actively recruiting bankers to support organic growth in 2026 [5][19] - Strategic planning is underway, considering deregulation and opportunities in the banking landscape [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in net loan growth accelerating over the next few quarters, despite some challenges in the market [3][18] - The credit team forecasts charge-offs to land around 10 basis points for the year, indicating stable credit metrics [4][8] Other Important Information - The company redeemed $405 million in subordinated debt late in the quarter, which is expected to positively impact net interest margin by approximately four basis points [6][8] - The tangible book value per share increased to $54.48, reflecting strong capital levels despite the dilutive impact of the Independent Financial merger [8] Q&A Session Summary Question: Can you walk us through the excess accretion and margin dynamics? - Management explained that higher accretion was seen in July, with expectations for a decrease in the following months due to early payoffs of loans [11][12] Question: What is the outlook for loan growth given market dislocation? - Management guided for mid-single-digit growth for the remainder of 2025, with a focus on commercial and industrial lending [18] Question: How do you feel about the rest of the credit portfolio apart from the large charge-off? - Management confirmed that the charge-off was related to a specific credit and that the rest of the portfolio remains stable [25] Question: What is the optimal CET1 ratio and capital management strategy? - Management indicated a preference for maintaining CET1 in the 11% to 12% range, with flexibility for share repurchases [26] Question: Can you quantify the impact of accretion on future margins? - Management noted that the expected accretion for the next quarter would be lower, impacting the overall margin guidance [46][49]

Financial Performance - SouthState reported diluted Earnings per Share (EPS) of $2.42, with adjusted diluted EPS (non-GAAP) at $2.58[30] - Revenue, non-tax equivalent, reached $699 million, a 5% increase compared to the prior quarter[30] - Pre-Provision Net Revenue (PPNR) (non-GAAP) amounted to $347.3 million[30] - Year-over-year PPNR/share growth (non-GAAP) was 43%[30] - Net interest margin, tax equivalent (non-GAAP), was 4.06%, up 0.04% from the prior quarter[30] Balance Sheet and Loan Portfolio - Loans increased by $401 million, or 3%, and deposits increased by $376 million, or 3%[30] - Total loan portfolio reached $47.7 billion, with Investor CRE comprising 37% and Consumer RE 21%[42] - Noninterest-bearing checking accounts totaled $13.4 billion, part of the total deposits of $54.1 billion[46] Asset Quality - Net charge-offs were 27 bps, bringing the year-to-date net charge-offs to 12 bps[30] - Total ACL reserve for unfunded commitments was $45 million[53] - Nonperforming Assets to Loans & OREO was 0.67%[56] Market and Geographic Focus - SouthState has $65 billion in assets, $48 billion in loans, and $55 billion in deposits[6] - The company operates 343 branch locations and is the 5 largest regional bank in the South[6] - SouthState is focused on the fastest-growing markets in America[10]